Crumbling case for Prop. 30

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Gov. Jerry Brown's strategy for persuading voters to approve new tax hikes, under the pretext of preserving funding for education, seemed to be falling short as Election Day drew ever nearer.

“The cookie jar is empty,” Mr. Brown said in an interview Friday on KNX/AM1070. “We need to get some more in it.”

Such a metaphor strikes us as ironic, given that California's political elite have been gorging on the fiscal equivalent of junk food, consuming tax dollars on Nanny State regulations and irresponsible and costly pet projects like high-speed rail.

Public opinion surveys indicate flagging support for both major revenue-raising measures on the ballot. There also is recent history; despite the fact California is deep blue, voters have not approved a statewide tax increase in eight years.

Mr. Brown has argued that voting against higher taxes will translate into further cuts to public schools.

Proposition 30, marketed by Mr. Brown and other supporters as helping public schools, would increase sales taxes and boost income taxes for California's wealthy. It doesn't just affect the rich. Prop. 30 would bring with it a quarter-cent boost in the sales tax in a state that already pays the highest rate in the nation. Every consumer pays sales tax – not just affluent Californians.

Prop. 38, funded by attorney Molly Munger and doing worse in the polls than Prop. 30, deals only with income taxes. It raises them on a sliding scale for most wage earners for 12 years – causing higher earners to pay disproportionately more in taxes and further alienating businesses in our state. Prop. 38 directs the extra money to local schools.

Mr. Brown says his Prop. 30 also protects schools. However, the nonpartisan Legislative Analyst's Office has pointed out funds raised through the measure would not be earmarked for schools. The California School Boards Association, despite its approval of Prop. 30, noted: “The governor's initiative does not provide new funding for schools. Instead, it bolsters the General Fund with new revenue.”

In short, politicians can spend the revenue however they see fit.

Proponents say Mr. Brown's measure will put the state on track to balancing the budget. “Prop. 30 balances our budget and helps us pay down California's debt – built up by years of gimmicks, borrowing and phony solutions,” reads a statement on the Yes on Prop. 30 website.

The governor's finance team has shown that, irrespective of the way Californians vote Nov. 6, spending will go up next year, anyway.

The Register's Editorial Board again urges No votes on Props. 30 and 38, as well as Prop. 39, a $1 billion tax increase on corporations based outside California. The lid needs to stay on the cookie jar.

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